How much do they cost to use abroad?

This table shows some of the typical fees you could face when using a debit card or credit card overseas:

Costs

Debit card

Credit card

Card transaction fee

0% - 2.99%

0% - 2.99%

Cash withdrawal fee

0% - 2.75%

0% - 5%

Cash withdrawal interest

n/a

6.5% - 69.9%

Debit card costs

This example shows an exchange rate of 0.73, a card transaction fee of 2.99% and a cash withdrawal fee of 2.75%.

Debit card

Conversion (€250)

Charge

Overall cost

Card transaction fee (2.99%)

£182.50

£5.46

£187.96

Cash withdrawal fee (2.75%)

£182.50

£5.02

£187.52

Total

£365.00

£10.48

£375.48

These figures assume you are in credit and not using your overdraft.

These 2 transactions abroad can cost you as much as £10.48 extra unless you shop around and find a debit card which offers lower or non-existent charges for usage abroad.

Credit card costs

This example shows an exchange rate of 0.73, a card transaction fee of 2.99% and a cash withdrawal fee of 5%.

Credit card

Conversion (€250)

Charge

Overall cost

Card transaction fee (2.99%)

£182.50

£5.46

£187.96

Cash withdrawal fee (5%)

£182.50

£9.13

£191.63

Total

£365.00

£14.59

£379.59

These 2 transactions can cost you £14.59, but you can find a credit card which does not charge for card transactions abroad, saving you the £5.46 seen above.

Daily interest on a credit card

On top of the cash withdrawal fee, you will also need to pay interest on the cash you withdraw using your credit card.

This table shows how much you will be charged over 10, 20 and 30 days if you withdraw €250 (£182.50) abroad:

Cost (€250 withdrawal)

10 days

20 days

30 days

Interest charge*

£2.78

£5.57

£8.35

* Based on 69.9% per annum.

Avoid using a credit card abroad if you plan on making cash withdrawals due to the excessive charges that come with them.

Use a prepaid card

You can use a prepaid card in a similar way to a credit card, except you need to top up the account with funds before you can use them, rather than spending money and paying it off later.

There are two types of prepaid card:

Standard prepaid cards are designed to be used in the UK but you can still use them abroad for both cash withdrawals and card transactions. You are charged on the rate of exchange each time you use these cards abroad.

Travel prepaid cards, or currency cards, are loaded with a foreign currency instead of sterling, which means you are charged a single exchange rate at the point of topping up the card, rather than every time you use the card.

You can use a prepaid card anywhere in the world to withdraw any currency.

If you have a prepaid card that only accepts top ups in a foreign currency, you will be charged the exchange rate between that currency and the one you transact in abroad.

Use travellers cheques

Did you know?

Travellers cheques were invented in 1772 and remained a popular way to spend abroad until the introduction of credit, debit and prepaid cards.

A traveller's cheque works by converting sterling into foreign currency as a cheque, which can be cashed when abroad.

When you buy travellers cheques, be careful to avoid any unnecessary charges, for example:

If you buy your travellers cheques using a credit card, you will be charged both by your credit card provider for a cash withdrawal and by the travellers cheque provider too.

There is usually no charge for using your debit card to pay for a travellers cheque, but double check with the provider before you complete your order.

Secure way to take money abroad

Easy to cancel if lost or stolen

Replacement sent within 24 hours

Cannot be exchanged everywhere

No emergency cash if lost or stolen

If not signed can be used if stolen

You must sign your travellers cheques when you get them or risk someone fraudulently signing and using them.

Travellers cheques are provided by many travel money companies in association with American Express. This means that you will need to find an American Express kiosk abroad to cash in your travellers cheques, though many hotels will also cash them in for you.

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money.co.uk is a trading name of Dot Zinc Limited, registered in England (4093922) and authorised and regulated by the Financial Conduct Authority (415689). Our registered address is: The Cooperage, 5 Copper Row, London, England, SE1 2LH. We are classed as a credit broker for consumer credit, not a lender.